Canadian marijuana stock Green Organic Dutchman Holdings Ltd. (TSX:TGOD) plans to create industry-leading branded products and supply organic base ingredients for cannabis beverages
SmallCapPower | June 8, 2018: The Green Organic Dutchman Holdings Ltd. (TSX:TGOD), a Canadian marijuana stock, Wednesday announced that it has launched a global division focused on the beverage industry to create industry-leading branded products and supply organic base ingredients for use in global beverage brands.
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Senior management of Green Organic Dutchman has more than 125 years of combined experience in the beverage industry, with international soft drink and beverage alcohol companies in Canada and the US. TGOD’s Beverage Division will utilize this experience to provide a strategic pathway into the cannabis market for large-scale beverage companies by way of direct investment, joint venture or other suitable opportunities.
Green Organic Dutchman CEO Robert Anderson said, “This launch allows us to engage larger beverage companies in a very unique manner as TGOD has the facilities, ingredients and the intellectual capabilities that make us a compelling choice.”
The global beverage industry generates more than US$1 trillion annually in sales, and cannabis-infused beverages are set to explode into the mainstream. Beverages are already 11% of the U.S. edibles market and are expected to grow significantly with expansion into CBD. There is significant potential for health and wellness-based cannabinoid-infused beverages, such as CBD iced teas, juices and sports drinks. Clearly with the launch of its global beverage division, Green Organic Dutchman is well-positioned to be a leader in these new markets.
Additionally, Green Organic Dutchman announced on Tuesday that it has entered into agreement with Canaccord Genuity Corp., acting as co-lead underwriter, to raise $25 million through a special warrant bought-deal financing. Underwriters have agreed to purchase 3.9 million special warrants at $6.40. The offering is expected to close on June 26, 2018. Green Organic Dutchman intends to use the net proceeds of the offering to fund strategic investments and international expansion opportunities.
Since listing on May 2, 2018, Green Organic Dutchman shares have skyrocketed to reach $7.87, which is more than double its IPO price of $3.65 per share. At the current market cap of $1.8 billion, Green Organic Dutchman is well positioned to ride the recreational opportunity with all the recent strategic initiatives.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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